OUTLOOK & ANALYSIS

When Compromise Is In Order for Some Goodwill Payouts

Businessmen standing on dollar billTwo ways to deal with the loss of a major client.

By Marc Rosenberg
Retirements & Buyouts

Sometimes you need a creative compromise for dealing with the issue of linking client retention with goodwill benefits.

Situations that could cause a firm to factor in lost clients in calculating goodwill benefits include:

  1. Client loss, regardless of who is at fault.
  2. Non-traditional services that were not institutionalized and hence, left the firm with the lead partner.
  3. Loss of a significant client.